Shareholders' equity is divided into: retained earnings and ordinary shares. retained earnings and preference shares. retained earnings and paid-in-capital. ordinary shares and preference shares. A corporation: cannot own property. is managed by the shareholders. has owners who have mutual agency. has owners who have limited liability The________own the corporation, but the__________, who are elected by the shareholders appoint officers to manage the business. shareholders, officers shareholders, board of directors officers, board of directors board of directors, officers Contributed capital is also known as: ordinary shareholders' equity. paid-in capital. retained earnings. total shareholders' equity. Which of the following is NOT an advantage of forming a corporation as compared to organizing as a partnership or proprietorship? Ease of transferring ownership Limited taxation Limited liability of shareholders Corporation is separate legal entity distinct from its owners Limited liability of a corporation means that: shareholders are not responsible for the decisions of management. the corporation is not required to earn net income. the corporation is not required to pay dividends. a shareholders' potential loss is limited to their investment in the corporation